Domestic equity markets trade higher in late morning deals

Domestic equity markets were trading higher with gains of around quarter a percent in late morning deals tracking positive cues from other Asian markets. Buying in Asian Paints, JSW Steel, NTPC, Maruti Suzuki and Adani Ports companies’ stocks supported the markets to trade higher. Sentiments got boost as the government has garnered Rs 98,681 crore from long term capital gains tax on listed equities in 2022-23, a 15 per cent growth over the previous year. Meanwhile, traders remained optimistic about the outlook for interest rates as they cautiously await the US Fed's monetary policy announcement later in the day. On the BSE sectoral front, traders were seen pilling up positions in Utilities, Power, Oil & Gas, Healthcare and Basic Materials, while selling was witnessed in Realty, Telecom and Capital Goods. 

On the global front, Asian markets were trading higher. Investors assessed China’s business activity data.  China’s factory activity contracted at a slightly faster pace in July, with the official manufacturing purchasing managers’ index standing at 49.4, down from 49.5 in June. Meanwhile, Japan’s central bank raised benchmark interest rates to around 0.25%. Back home, in the stock specific development, Torrent Power surged on robust June quarter earnings.   

The BSE Sensex is currently trading at 81637.72, up by 182.32 points or 0.22% after trading in a range of 81434.32 and 81758.02. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.85%, while Small cap index up by 0.18%.

The top gaining sectoral indices on the BSE were Utilities up by 1.31%, Power up by 1.21%, Oil & Gas up by 0.84%, Healthcare up by 0.74% and Basic Materials up by 0.64%, while Realty down by 0.61%, Telecom down by 0.15% and Capital Goods down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.34%, JSW Steel up by 1.69%, NTPC up by 1.66%, Adani Ports up by 1.47% and Maruti Suzuki up by 1.08%. On the flip side, Axis Bank down by 0.93%, Indusind Bank down by 0.75%, Power Grid down by 0.69%, Reliance Industries down by 0.55% and Hindustan Unilever down by 0.55% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has issued a Master Direction on the treatment of wilful defaulters and large defaulters under which banks and NBFCs will have to examine the wilful default aspect in all non-performing asset accounts with outstanding amounts of Rs 25 lakh and above.

A lender will identify and classify a person as a wilful defaulter by following a specified procedure. The evidence of wilful default will be examined by an identification committee. Wilful defaulter means a borrower or a guarantor who has committed wilful default, and the outstanding amount is Rs 25 lakh and above.

It stated ‘The lender shall examine the ‘wilful default’ aspect in all NPA accounts with an outstanding amount of Rs 25 lakh and above…from time to time.’ If a wilful default is observed in the internal preliminary screening, the lenders will complete the process of classification/declaring the borrower as a wilful defaulter within six months of the account being classified as NPA.

Further, it said the lenders should formulate a non-discriminatory board-approved policy that clearly sets out the criteria based on which the photographs of persons classified and declared as wilful defaulters shall be published. It added ‘No additional credit facility shall be granted by any lender to a wilful defaulter or any entity with which a wilful defaulter is associated.’

The CNX Nifty is currently trading at 24923.00, up by 65.70 points or 0.26% after trading in a range of 24856.50 and 24954.45. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 2.33%, JSW Steel up by 1.81%, NTPC up by 1.65%, HDFC Life up by 1.63% and Adani Enterprises up by 1.60%. On the flip side, Divi's Lab down by 1.88%, Tata Consumer down by 1.67%, Axis Bank down by 0.89%, Power Grid down by 0.77% and Indusind Bank down by 0.69% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 340.83 points or 1.97% to 17,343.74, Jakarta Composite gained 12.59 points or 0.17% to 7,254.45, Shanghai Composite strengthened 55.86 points or 1.9% to 2,935.16, Straits Times rose 7.71 points or 0.22% to 3,449.48, KOSPI increased 15.95 points or 0.58% to 2,754.14, Nikkei 225 surged 189.17 points or 0.49% to 38,715.12 and Taiwan Weighted added 22.93 points or 0.1% to 22,246.50.